Switzerland is one of the DACH countries – it corresponds to CH in this shortage. With an approximately 8.82 million population, it continues to be a significant player in the DACH economic landscape.
Switzerland is a fascinating country – it has been neutral in the arena of international conflicts for a long time. It is not part of the European Union but belongs to the United Nations. It is also one of the founders of the European Free Trade Association.
Switzerland’s strong economy, characterized by high GDP per capita – which is expected to reach $91.048 by the end of 2024 – fosters a consumer market with significant purchasing power. This wealth is reflected in high consumer confidence and spending capacity, which drive demand in the e-commerce sector. The advanced infrastructure, including robust internet services and logistics networks, supports efficient online transactions and deliveries, making Switzerland an attractive market for e-commerce businesses.
Together, these elements not only boost local e-commerce development but also attract international platforms seeking to tap into a prosperous and stable market.
Let’s check how it reflects in the state of e-commerce in Switzerland.
E-commerce in Switzerland – overview
Switzerland has a robust e-commerce landscape projected to reach a market size of $16.5 billion in 2024, with an expected compound annual growth rate (CAGR) of 13.71% from 2024 to 2029. This growth is supported by high internet penetration, where 95% of the population between 16 to 65 years regularly use the internet, and a large majority of these individuals engage in online shopping.
In 2024, the Swiss e-commerce market is estimated to rank as the 28th largest globally, with revenues expected to reach $14.2 billion. The largest revenue segments within Swiss e-commerce include Electronics at 27.3%, followed by Fashion at 23.7%, and Hobby & Leisure at 15.1%.
Moreover, the sector is marked by significant innovations and developments. For instance, Swiss companies are increasingly integrating AI and IoT to enhance business operations and consumer experience. This includes efforts by major e-commerce platforms like Zalando to cater to niche markets and implement sustainable practices.
Trade conditions in Switzerland
In 2024, Switzerland continues to benefit from its stable economic fundamentals, which support a flourishing trade environment. Zurich and Geneva remain the main trading hubs, largely due to their high levels of urbanization and the strong demand from both local consumers and tourists. These cities’ appealing geographic locations and excellent connectivity also contribute to their economic vitality.
Switzerland’s reputation as the “Silicon Valley of Europe” is supported by its favorable conditions for technological and software development. This innovation-friendly environment is further enhanced by the country’s strategic tax policies. For instance, tax rates vary significantly across the region, ranging from relatively low rates in the canton of Zug to higher rates in the French-speaking parts, making Switzerland an attractive destination for e-commerce and tech companies seeking favorable business conditions.
On a broader scale, Switzerland has maintained a strong trade surplus and a healthy economic growth trajectory. The country’s trade structure benefits from a diversity of export products and robust trade relationships with major global economies. The top trading partners include the United States, Germany, and China, with key export products spanning from gold, medicaments, and jewelry.
Switzerland’s proactive approach to taxation is evidenced by its early adoption of the OECD/G20’s two-pillar project on minimum taxation. The country set a constitutional basis for these changes with a referendum on June 18, 2023, leading to the Federal Council enacting the Minimum Taxation Ordinance on December 22, 2023. Despite pressures to delay, Switzerland introduced the local top-up tax (Qualified Domestic Minimum Tax, QDMTT) for financial years starting on or after January 1, 2024. However, Switzerland decided to delay the implementation of the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR). It was already anticipated that UTPR wouldn’t be introduced until at least 2025, aligning with many other countries’ plans. This measured approach allows Switzerland to align its fiscal policies with global standards while considering domestic economic impacts.
Customer behaviour in Switzerland
In 2024, consumer behavior in Switzerland is significantly shaped by its demographic and technological landscape. With a population of 8.82 million, a nearly even gender distribution, and a strong urban majority (74.3%), Swiss e-commerce has great opportunities in this field. The median age of 42.5 years reflects a mature population, with nearly 20% aged 65 and above, indicating a market with substantial purchasing power in the senior segment.
Swiss consumer behavior is also deeply influenced by high internet penetration, at 99% of the population. This connectivity, coupled with impressive internet speed, facilitates a robust online shopping environment. Swiss consumers are increasingly engaging in e-commerce, influenced by convenience and enhanced mobile commerce capabilities. Social media platforms play a significant role in product discovery and purchase, particularly among younger demographics, who are adept at using these platforms for shopping. But we will talk about it later.
This tech-savvy consumer base values transparency, user-generated content in making purchasing decisions, and reflects a preference for authentic and well-reviewed products. Additionally, the Swiss are known for their high regard for product origins and quality. They often choose products that offer a clear, trustworthy provenance over lesser-known brands. This discernment is part of a broader trend toward mindful consumption, where environmental impact and value for money play critical roles in purchasing decisions.
Payment methods in Switzerland
The top payment methods in Switzerland in 2024 for e-commerce are, among others:
- Bank transfers
- Debit and credit cards
- Mobile wallets
- Cash-on-delivery
- Other
Let’s see them all in more detail.
Bank Transfers
Bank transfers are a traditional and reliable payment method preferred by many in Switzerland, particularly for larger transactions. Users appreciate the enhanced security that comes with bank transfers, as they minimize the risk of fraud and theft by not sharing card details. Bank transfers are also favored for their traceability and clear record-keeping. Many Swiss consumers use bank transfers for online shopping due to their familiarity and trust in their banking institutions. This method also allows for greater control over finances, as transactions are directly managed through the bank. For international purchases, Swiss banks offer competitive exchange rates and lower transaction fees compared to other methods.
Debit and Credit Cards
Debit and credit cards are among the most popular payment methods in Switzerland due to their convenience and widespread acceptance. These cards offer instant payment capabilities, making them ideal for both online and offline shopping. Consumers enjoy the benefits of quick transaction processing and the ability to make purchases on credit, which can be helpful in managing monthly finances. Credit cards often come with reward programs, cashback, or discounts, which can be a significant incentive for users. For security, Swiss card issuers incorporate advanced features like chip technology and contactless payments, which speed up transactions while enhancing security. The ubiquity of card acceptance in stores and online platforms in Switzerland ensures that consumers can use their cards freely without compatibility issues.
Mobile Wallets
Mobile wallets have gained significant traction in Switzerland, especially among the tech-savvy and younger demographics. These digital wallets store payment information on a mobile device and allow users to make contactless payments quickly and securely. The rise in smartphone usage has propelled the adoption of mobile wallets, as they offer a convenient way to integrate multiple payment methods in one device. Users appreciate the added security layers, such as biometric verification (fingerprint or facial recognition), which enhance the safety of transactions.
Moreover, mobile wallets often link directly to loyalty programs and automatically apply discounts or rewards during payment. The environmental benefit of reducing the need for physical cards and cash also resonates with the eco-conscious Swiss population.
Cash-on-Delivery
Cash-on-delivery (COD) is a payment method that, while less common in the digital age, still finds relevance in Switzerland, particularly among consumers who are skeptical about online transactions. This method allows buyers to pay for goods in cash at the time of delivery instead of paying upfront online. COD can be crucial for those who do not have access to or prefer not to use digital payment methods. It also eliminates the need for online banking or credit card use, and reduces the risk of online fraud and data breaches. Some consumers prefer COD as it ensures they pay only after receiving and verifying their purchases. This method is particularly popular for expensive items or from new or less-known online retailers where consumer trust is still developing.
Other Payment Methods
Other innovative payment methods in Switzerland include cryptocurrencies and peer-to-peer payments. These alternatives cater to niche markets interested in cutting-edge technology and financial trends. Cryptocurrencies, for instance, offer the advantage of decentralized transactions and are slowly being integrated into more mainstream platforms. On the other hand, peer-to-peer payment systems are popular among friends and family who need to split bills or share expenses.
Some Swiss consumers also explore prepaid cards and gift cards to manage spending or provide flexible gift options. These diverse payment methods highlight Switzerland’s progressive attitude toward financial technology.
Payment safety in Switzerland
The main criterion for choosing a payment method is security and privacy. A large proportion of consumers perceive it as protection against data manipulation and confidentiality. What else is crucial – full control over the payment process and its transparency. For many consumers, transaction security is a precondition for considering a payment method at all. Cards are perceived as the safest payment method when it comes to data protection. When it comes to avoiding financial damage e-banking is number one.
However, security and privacy are desirable in many other areas as well, such as when processing online data (37.9% of customers are concerned about this) and browsing the Internet – VPNs are used by as many as 23.9%.
Social media in e-commerce in Switzerland
As of early 2024, Switzerland had 6.92 million active social media users, which is equivalent to 78.4% of the total population. This substantial user base is a key target for marketers, particularly given that 79.2% of internet users in the country used at least one social media platform in January 2024.
Platforms like WhatsApp, Facebook, and Instagram are prominent in the Swiss market. For example, monthly active users spend as much as 9 hours and 28 minutes on Facebook. Only platforms such as TikTok (22h 57m) and YouTube (9h 41m) recorded more.
Instagram also shows a dynamic presence. As many as 65.5% of internet users use it monthly. Only WhatsApp has more, with 84.8% of monthly Internet users. The numbers above highlight the popularity of these apps in reaching those who use social media frequently.
YouTube also plays a crucial role, with a penetration equal to 78.4% of the total population. It serves as a key channel for video marketing, and allows brands to engage users with longer-form content and interactive ads. Snapchat and X cater to niche markets but are growing. Snapchat’s user base, while smaller, offers unique ad formats and strong engagement among younger demographics. X, with a significant increase in ad reach, provides a platform for more direct and real-time engagement with users, which can be particularly valuable for timely promotions and updates.
The presence and growth of these platforms underscore the importance of integrating social media into e-commerce strategies and tapping into Switzerland’s highly digital and mobile-first consumer base.
Logistics in Switzerland
Switzerland continues to innovate in the logistics sector with significant developments like the Cargo Sous Terrain (CST) project. This ambitious plan aims to create an underground logistics network spanning 500 kilometers across Switzerland, connecting major hubs from Lake Geneva to Lake Constance. The first phase focuses on a 70-kilometer stretch from Härkingen to Zurich, set to be operational by 2031, and aims to alleviate surface traffic by providing an alternative route for goods transportation.
In terms of parcel delivery within Switzerland, the general trend shows a shift towards more efficient and sustainable logistics solutions, such as the use of collection points to reduce delivery trips and enhance convenience for consumers. This aligns with Switzerland’s broader logistics strategy, which prioritizes rapid, reliable, and eco-friendly distribution methods.
Germany remains a primary importer to Switzerland due to its proximity and economic ties. Although Austria is not in the top five, its geographical closeness still plays a role in regional trade dynamics. Italy and France, also neighboring countries, continue to be major trade partners that reflect robust cross-border commercial activities.
Conclusion
Switzerland is an interesting country. As a part of the DACH region, it shows some similarities with, e.g., Germany. For consumers of both countries, safety is the priority. But there are also some differences. A great example here is cross-border shopping. Swiss do it a lot; meanwhile, Germans prefer to focus on their native market. Switzerland needs to face some challenges, also in terms of e-commerce, however, watching how technology-driven this environment is, we can only expect even more innovation coming the e-commerce way. And we’re looking forward to seeing them!
If you are aiming to expand into the Swiss market or the whole DACH region, the above information should be very useful for you. I hope you find it helpful for your e-commerce.
Do you want to find more info about DACH countries?
Click here to read about e-commerce in Germany and follow our blog, as we are going to publish more country reports soon.
And if you’re hungry for more knowledge, subscribe to our newsletter for more industry insights.
